ASSOCIATION OF INTERNATIONAL: Hui Sze Wai Appointed as LiquidatorAURASOUND INC: Losses Cue Going Concern DoubtHK COPYRIGHT: Members' Final Meeting Set for November 1HIRISE DEVELOPMENT: Annual Meetings Set for October 15HKRB OPERATIONS: Members' Final Meeting Set for October 26

HONORWAY INDUSTRIAL: Annual Meetings Set for October 15IVY ASSET: Creditors' Proofs of Debt Due October 29KINGWEALTH TECHNOLOGY: Members' Final Meeting Set for November 1L & P: Commences Wind-Up ProceedingsLEAN GIAP: Members' Final Meeting Set for November 1

LU KEE: Lui Chi Kit Appointed as LiquidatorNATURE'S FARM: Annual Meetings Set for October 8MAY COIN: Members' Final Meeting Set for November 5NORITAKE HK: Seng and Lo Step Down as LiquidatorsPFEIFFER INTERNATIONAL: Annual Meetings Set for October 15

HASTINGS BUILDING: Fitch Upgrades Issuer Default Rating from 'BB'-----------------------------------------------------------------Fitch Ratings has upgraded Hastings Building Society's Long-termIssuer Default Rating to 'BBB' from 'BB', Short-term IDR to 'F2'from 'B', Individual Rating to 'C' from 'C/D' and Support RatingFloor to 'B+' from 'B', resolving the Rating Watch Positive whichwas assigned on 1 July 2010. At the same time, the agency hasaffirmed the Support Rating of '4'. Fitch has simultaneouslywithdrawn all outstanding ratings of HBS. A full list of ratingactions is included at the end of this commentary.

The rating action follows the legal completion of the mergerbetween HBS and the larger entity, Southland Building Society (SBSBank, 'BBB'/ Stable) on October 1, 2010. Having become part ofSBS Bank, HBS will no longer exist as a legal entity, although itsbrand name will remain in the market. All of HBS' obligationshave been transferred to SBS Bank, with members exchanging theirmember rights for SBS Bank's membership.

At end-March 2010, HBS accounted for 7% and 10% of SBS Bank'stotal assets and total equity, respectively. HBS will benefitfrom a wider product range and enhanced risk management andtreasury functions, while SBS Bank increases its presence in theNorth Island of New Zealand, continuing to strengthen its depositfunding position. The asset quality of the combined loan books isexpected to remain similar to SBS Bank's current asset qualitylevels.

-- Support rating floor upgraded to 'B+' from 'B' and withdrawn; RWP removed.

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CHINA FRUITS: Posts US$149,900 Net Loss in June 30 Quarter----------------------------------------------------------China Fruits Corporation filed its quarterly report on Form 10-Q,reporting a net loss of US$149,876 on US$147,951 of revenue forthe three months ended June 30, 2010, compared with a net loss ofUS$65,381 on US$294,887 of revenue for the same period last year.

As of June 30, 2010, the Company had an accumulated deficit ofUS$1.4 million. Cash flows provided by operating activities wereUS$26,893 during the six months ended June 30, 2010, compared tocash flows of US$636,840 used in operating activities for the sixmonths ended June 30, 2009. Positive cash flows from operationsfor the six months ended June 30, 2010, were due primarily to thedecrease in accounts receivable in the amount of US$358,603, plusthe decrease in inventories and other assets by US$60,024 andUS$7,083, respectively, partially offset by the net loss ofUS$239,980 and the decrease in accounts payable and tax payable byUS$163,237 and US$32,252, respectively.

The Company's balance sheet as of June 30, 2010, showedUS$4.0 million in total assets, US$1.7 million in totalliabilities, and stockholders' equity of US$2.3 million.

As reported in the Troubled Company Reporter on April 21, 2010,Lake & Associates CPA's LLC, expressed substantial doubt about theCompany's ability to continue as a going concern, following its2009. The independent auditors noted of the Company's accumulateddeficit and negative cash flow from operations.

Based in Jiang Xi Province, the People's Republic of China, ChinaFruits Corporation was incorporated in the State of Delaware onJanuary 6, 1993, as Vaxcel, Inc. On December 19, 2000, theCompany changed its name to eLocity Networks Corporation. OnAugust 6, 2002, the Company changed its name to DiversifiedFinancial Resources Corporation. In May 2006, the Company's boarddecided to redomicile from the State of Delaware to the State ofNevada. On August 18, 2006, the Company changed its name to ChinaFruits Corporation. The Company is principally engaged inmanufacturing, trading and distributing fresh tangerine, non-alcoholic and alcoholic beverages in the People's Republic ofChina.

PIONEER IRON: Goes Into Provisional Liquidation in Hong Kong------------------------------------------------------------Naomi Rovnick at the South China Morning Post reports that PioneerIron and Steel has gone into provisional liquidation in Hong Kong,owing creditors more than US$516 million.

SUNRISE REAL: Posts US$506,900 Net Loss in June 30 Quarter--------------------------------------------------------Sunrise Real Estate Group, Inc., filed its quarterly report onForm 10-Q, reporting a net loss of US$506,920 on US$2.9 million ofrevenue for the three months ended June 30, 2010, compared with anet loss of US$372,559 on US$1.8 million of revenue for the sameperiod of 2009.

The Company ended the period with a cash position of roughlyUS$2.3 million, as compared to roughly US$3.4 million at December31, 2009, and US$514,366 at June 30, 2009.

The Company's operating activities used net cash of US$387,003during the six months ended June 30, 2010.

The Company's balance sheet as of June 30, 2010, showedUS$15.6 million in total assets, US$17.8 million in totalliabilities, US$1.1 million in noncontrolling interests ofconsolidated subsidiaries, and a stockholders' deficit of US$3.3million.

As reported in the Troubled Company Reporter on April 21, 2010,Kenne Ruan, CPA, P.C., in Woodbridge, Conn., expressed substantialdoubt about the Company's ability to continue as a going concern,following its 2009 results. The independent auditors noted thatthe Company has significant accumulated losses from operations andhas a net capital deficiency.

Headquartered in Shanghai, the People's Republic of China, SunriseReal Estate Group, Inc. was initially incorporated in Texas onOctober 10, 1996, under the name of Parallax Entertainment, Inc.On December 12, 2003, Parallax changed its name to Sunrise RealEstate Development Group, Inc. On April 25, 2006, Sunrise EstateDevelopment Group, Inc. filed Articles of Amendment with the TexasSecretary of State, changing the name of Sunrise Real EstateDevelopment Group, Inc. to Sunrise Real Estate Group, Inc.,effective from May 23, 2006.

The Company and its subsidiaries are engaged in the propertybrokerage services, real estate marketing services, propertyleasing services and property management services in China.

================H O N G K O N G================

ASSOCIATION OF INTERNATIONAL: Hui Sze Wai Appointed as Liquidator-----------------------------------------------------------------Hui Sze Wai on September 20, 2010, was appointed as liquidator ofAssociation of International Beauty Therapists Limited.

Kabani & Company, Inc., in Los Angeles, expressed substantialdoubt about the Company's ability to continue as a going concern.The independent auditors noted that during the year ended June 30,2010, the Company incurred net losses of US$2.2 million, and hadnegative cash flow from operating activities of US$202,383.

The Company reported a net loss of US$2.2 million on US$7.5million of revenue for fiscal 2010, compared with a net loss ofUS$2.6 million on US$1.6 million of revenue for fiscal 2009.

As of June 30, 2010, the Company had a working capital deficit ofUS$6.6 million compared to a deficit of US$4.4 million as of June30, 2009.

On June 30, 2010, the Company had US$129,939 in cash as comparedto US$321,455 in cash on June 30, 2009. As of September 28, 2010,the Company has sufficient cash to continue its operations for aperiod of about two months.

The Company's balance sheet at June 30, 2010, showed US$4.2million in total assets, US$10.7 million in total liabilities, andstockholders' deficit of US$6.5 million.

Santa Fe Springs, Calif.-based AuraSound, Inc. (OTC BB: ARUZ)-- http://www.aurasound.com/-- through its wholly-owned subsidiary, AuraSound, Inc. ("AuraSound"), a Californiacorporation, develops, manufactures and markets premium audioproducts. Specifically, AuraSound has developed and is currentlymarketing undersized speakers that will deliver sound quality todevices such as laptops, flat-panel televisions and displays thatthe Company believes to be superior to the sound quality currentlyfound in these devices. During the year ended June 30, 2010, theCompany's operations in China were conducted through Well-TechInternational Co., a Hong Kong company owned by Susanne Lee who isthe Company's office administrator in Hong Kong. The Company'soperations in Taiwan are conducted by AuraSound as a foreigncorporation doing business in Taiwan.

With its recent acquisition of ASI Audiotechnologies, which closedon July 31, 2010, the Company has an industry leading TV soundbarbusiness, additional proprietary transducer technology,application specific amplifier designs, and award winning IDdesigns.

At the meeting, So Yin Wai Alex, the company's liquidator, willgive a report on the company's wind-up proceedings and propertydisposal.

HIRISE DEVELOPMENT: Annual Meetings Set for October 15------------------------------------------------------Members and creditors of Hirise Development Limited will holdtheir annual meetings on October 15, 2010, at 3:30 p.m., at 14thFloor, The Hong Kong Club Building, 3A Chater Road, Central, inHong Kong.

At the meeting, Fok Hei Yu, the company's liquidator, will give areport on the company's wind-up proceedings and property disposal.

At the meeting, Kong Chi How Johnson, the company's liquidator,will give a report on the company's wind-up proceedings andproperty disposal.

HONORWAY INDUSTRIAL: Annual Meetings Set for October 15-------------------------------------------------------Members and creditors of Honorway Industrial Limited will holdtheir annual meetings on October 15, 2010, at 4:00 p.m., at 14thFloor, The Hong Kong Club Building, 3A Chater Road, Central, inHong Kong.

At the meeting, Fok Hei Yu, the company's liquidator, will give areport on the company's wind-up proceedings and property disposal.

IVY ASSET: Creditors' Proofs of Debt Due October 29---------------------------------------------------Ivy Asset Management (HK) Limited, which is in members' voluntaryliquidation, requires its creditors to file their proofs of debtby October 29, 2010, to be included in the company's dividenddistribution.

NATURE'S FARM: Annual Meetings Set for October 8------------------------------------------------Members and creditors of Nature's Farm Products Limited will holdtheir annual meetings on October 8, 2010, at 10:00 a.m., at 62ndFloor, One Island East, 18 Westlands Road, Island East, in HongKong.

At the meeting, Stephen Liu Yiu Keung, the company's liquidator,will give a report on the company's wind-up proceedings andproperty disposal.

MAY COIN: Members' Final Meeting Set for November 5---------------------------------------------------Members of May Coin Company Limited will hold their final generalmeeting on November 5, 2010, at 12:00 p.m., at Unit 204, EasternCentre, 1065 King's Road, in Hong Kong.

At the meeting, Hong Tian Shong, the company's liquidator, willgive a report on the company's wind-up proceedings and propertydisposal.

PFEIFFER INTERNATIONAL: Annual Meetings Set for October 15----------------------------------------------------------Members and creditors of Pfeiffer International Limited will holdtheir annual meetings on October 15, 2010, at 2:30 p.m., at 14thFloor, The Hong Kong Club Building, 3A Chater Road, Central, inHong Kong.

At the meeting, Fok Hei Yu, the company's liquidator, will give areport on the company's wind-up proceedings and property disposal.

The rating reflects AIL's small scale of operations, limitedrevenue growth over the past five years, geographical and customerconcentration in revenue profile, large working capitalrequirements, and susceptibility to volatility in raw materialprices and in the value of the Indian rupee. AIL's financialflexibility is limited because it has extended loans and advancesto its group companies and associates. These rating weaknessesare partially offset by AIL's established relationships withcustomers, strong operating margin, and healthy gearing and debtprotection metrics.

AIL was set up as a partnership firm by Mr. J S Anand and Mr. V SAnand in 1967. It was reconstituted as a public limited companyin 1995. In March 2007, the current promoter, Mr. Mukesh Sanglaacquired the original promoters' entire ownership in AIL.

AIL manufactures drive shaft assemblies and other components,which are used mainly in the automobile industry, and also inagriculture, locomotive, and marine sectors. Propeller shaftsmanufactured by AIL are mainly used in heavy commercial vehicles,heavy earth-moving equipment, and engine test cell equipment. AILexports its products mainly to the US, Canada, the UK, SouthAfrica, and Germany.

AIL reported a profit after tax (PAT) of INR20.7 million on netsales of INR166.3 million for 2009-10 (refers to financial year,April 1 to March 31), against a PAT of INR14.5 million on netsales of INR242.3 million for 2008-09.

BALAJI POLYSACKS: CRISIL Reaffirms 'BB+' Ratings on Bank Debts--------------------------------------------------------------CRISIL's ratings on the bank facilities of Balaji Polysacks PvtLtd continue to reflect BPPL's limited financial flexibility, lownet worth, and small scale of operations in the intenselycompetitive polyethylene bags industry. These weaknesses arepartially offset by the benefits that the company derives from itsestablished customer base.

CRISIL believes that BPPL will maintain healthy growth in revenuesover the medium term, on the back of its promoters' experience andthe increased market potential for its products. The outlook maybe revised to 'Positive' if the company's financial risk profileimproves significantly, supported by capital infusion and growthin topline. Conversely, the outlook may be revised to 'Negative'if BPPL contracts large debt to fund its capital expenditure(capex), thereby weakening its financial risk profile.

Update

BPPL's performance for 2009-10 (refers to financial year, April 1to March 31) is estimated to have been in line with CRISIL'sexpectation. The company's liquidity is likely to remainmoderate, backed by steady accruals, moderate bank limitutilization, no significant capex plans, and minimal equipmentloan obligations.

BPPL is planning to float a subsidiary by the end of 2010. Thesubsidiary would be manufacturing high-density polyethylene (HDPE)bags with capacities envisaged at 6000 metric tonnes per annum(tpa). The investment in the subsidiary company has not beenestimated as yet.

BPPL reported a provisional profit after tax (PAT) of INR3.1million on net sales of INR418.85 million for 2009-10, as againsta PAT of INR1.7 million on net sales of INR402.55 million for2008-09.

About Balaji Polysacks

Set up as a closely held company in 1995 by Mr. Sajjan KumarAgarwal, Mr. Sushil Agarwal, and Mr. Naresh Kumar Agarwal, BPPLcommenced commercial production in 2000. The company manufacturesHDPE bags, primarily for the fertiliser industry. It has loomcapacities of 5400 tpa.

The ratings reflect CRPL's limited track record of operations andmarginal market share in the formulations segment, geographicalconcentration in revenue profile and exposure to risks related tointense competition in the domestic formulations industry. Theserating weaknesses are partially offset by CRPL's above-averagefinancial risk profile, marked by healthy gearing and debtprotection metrics, and established distribution network.

Outlook: Stable

CRISIL believes CRPL will sustain its credit risk profilesupported by the strength of its distribution network and itsabove-average financial risk profile. The outlook may be revisedto 'Positive' if the company substantially increases its scale ofoperations, while maintaining its operating margin. Conversely,the outlook may be revised to 'Negative' if the company undertakesany larger-than-expected debt-funded capex program leading tomaterial deterioration of financial risk profile, or if it isadversely affected by any regulatory changes.

About Corona Remedies

Set up in 2004, CRPL is a Gujarat-based pharmaceutical companymanufacturing formulations. The company currently has a portfolioof around 200 products catering to various therapeutic segmentssuch as respiratory tract, anti allergy, neutraceuticals,hormonal, and others. It has its manufacturing unit in Solan(Himachal Pradesh) and currently its distribution network isspread over 10 states in India. CRPL operates five divisions,'Pharma' (gynaecology and pediatrics), 'Xenex' (skin ailments andneurosurgery) 'Aarush' (gynaecology and hormonal products; catersto ethical/prescription drugs), and 'Ecogen' and 'Aton' (over-the-counter generic products).

CRPL reported a profit after tax (PAT) of INR34.7 million on netsales of INR391.7 million for 2009-10 (refers to financial year,April 1 to March 31) against a PAT of INR15.3 million on net salesof INR224.7 million for 2008-09.

The ratings reflect FGGL's below-average financial risk profilemarked by a highly leveraged capital structure and small networth; the ratings also reflect the company's commodity-likeproduct offering, and exposure to risks related to intensifyingcompetition in the float glass industry. These rating weaknessesare partially offset by FGGL's improving business volumes,established market position, automated production facilities inproximity to float glass suppliers, and diversified productprofile and customer base.

Outlook: Stable

CRISIL believes that FGGL's will maintain its business riskprofile supported by its flexible processing capabilities fordifferent varieties of glass, operational efficiencies resultingfrom the proximity of its facility to float glass manufacturers,and high level of automation in its manufacturing process. FGGL'scapital structure is, however, expected to remain highly leveragedover medium term. The outlook may be revised to 'Positive' incase of significant improvement in FGGL's capital structurewithout any deterioration in the company's market position. Theoutlook may be revised to 'Negative' if the company undertakes alarger-than-expected, debt-funded capital expenditure program,resulting in further deterioration in the financial risk profileor in case of deterioration in FGGL's market position.

About FG Glass

Set up in 2004, FGGL processes float glass for architectural (95per cent of revenues) and industrial (5 per cent of revenues)applications. The company is managed by the Amravatiwala familyand has a manufacturing facility in Taloja (Maharashtra).

FGGL reported a profit after tax (PAT) of INR16 million on netsales of INR450 million for 2009-10 (refers to financial year,April 1 to March 31), against a PAT of INR12 million on net salesof INR394 million for 2008-09.

CRISIL believes that GTL's financial risk profile will remainconstrained because of its small net worth and average debtprotection metrics. The outlook may be revised to 'Positive' ifGTL increases its scale of operations with significant improvementin profitability. Conversely, the outlook may be revised to'Negative' if the company contracts large debt to fund its capitalexpenditure programs, or to meets its incremental working capitalrequirements, thereby weakening its financial risk profile.

GTL is estimated to reported a profit after tax (PAT) of INR11.6million on net sales of INR1031.5 million for 2009-10 (refers tofinancial year, April 1 to March 31), against a PAT of INR9.0million on net sales of INR918.7 million for 2008-09.

GLOBAL ENERGY: CRISIL Assigns 'D' Ratings to INR29.9MM Term Loan----------------------------------------------------------------CRISIL has assigned its 'D/P5' ratings to Global Energy FoodIndustries' bank facilities. The ratings reflect delay by GEFI inservicing its term loan. The delay has been caused by GEFI's weakliquidity.

GEFI has large working capital requirements and small net worth,which has led to its average financial risk profile. The firm alsoaverage scale of operations and limited track record in food-products export segment. GEFI, however, benefits from itsdiversified geographical reach and customer base.

About Global Energy

GEFI was set up in 2005 by Mr. Suresh Bherwani and Mr. NarayanPagrani as a partnership firm. It manufactures biscuits and otherconfectionery items. The firm is a 100 per cent export-orientedunit, and exports to Africa, the UAE, and the Caribbean.

GEFI reported a profit after tax (PAT) of INR85.8 million on netsales of INR399.5 million for 2008-09 (refers to financial year,April 1 to March 31), against a PAT of INR27.9 million on netsales of INR249.3 million for 2007-08.

The ratings reflect GSR's large working capital requirements, andexposure to risks related to geographical and customerconcentration in revenue profile. These rating weaknesses arepartially offset by healthy growth in GSR's revenues, and thecompany's strong order book.

Outlook: Stable

CRISIL believes that GSR will benefit from the healthy growthprospects for the civil construction industry over the mediumterm. The outlook may be revised to 'Positive' if GSR strengthensits business risk profile by diversifying into allied segments andreducing the concentration in its revenue profile, whilestabilising its operating margin. Conversely, the outlook may berevised to 'Negative' if the company's financial risk profiledeteriorates because of any large, debt-funded capital expenditureprograms or acquisitions.

About GSR Ventures

GSR was set up as a partnership firm in 1971-72 (refers tofinancial year, April 1 to March 31), and subsequently,reconstituted as a closely held company in 2008-09. The company,since its inception, undertakes civil construction activities,including canal earthwork excavation, embankment construction, andconstruction of bridges. GSR executes projects primarily inAndhra Pradesh.

GSR reported a provisional profit after tax (PAT) of INR12.36million on net sales of INR627.37 million for 2009-10 (refers tofinancial year, April 1 to March 31), against a PAT of INR3.6million on net sales of INR493.39 million for 2008-09.

Ispat Infra, however, benefits from its strong customer profileand its exclusive marketing arrangements with Europeanmanufacturers of work platforms, hoists, cutting and bendingmachines.

Update

Ispat Infra's liquidity continues to be weak even after thecompany's bank facilities were restructured during 2009-10 (refersto financial year, April 1 to March 31). The company's overdueinterest obligations were converted into a funded interest termloan (FITL). However, due to delays in debtor collection theliquidity remains poor and consequently, the company's bank limitswere almost fully utilized over the six months through August2010, with few overdrawals.

About Ispat Infrastructure

Incorporated in 1999, Ispat Infra was formed to undertake thebusiness of business of trading and leasing of constructionequipments. These infrastructure and construction equipmentsinclude bar bending and cutting machines, mast climbing workplatforms, passenger material hoists among others.

Ispat Infra reported a profit after tax (PAT) of INR14.9 millionon sales of INR419 million for 2009-10, as against a PAT of INR9.8million on net sales of INR367 million for 2008-09.

NAP CONSTRUCTION: CRISIL Reaffirms 'BB+' Rating on INR3M Term Loan------------------------------------------------------------------CRISIL's rating on the bank facilities of NAP Construction Pvt Ltdcontinues to reflect NAP Construction's small scale of operationsin the civil construction industry, low net worth, and exposure torisks relating to geographical and customer concentration in itsrevenue profile. These weaknesses are partially offset by healthygrowth in the company's revenues, and its comfortable order book.

CRISIL believes that NAP Construction will maintain a stableoutlook on the back of healthy growth prospects in the civilconstruction industry. The company's credit risk profile will,however, remain constrained due to concentration of revenues inWest Bengal. The outlook may be revised to 'Positive' if NAPConstruction strengthens its business risk profile by diversifyingits revenue profile, while maintaining its operating margins.Conversely, the outlook may be revised to 'Negative' if NAPConstruction takes on additional debt to fund capital expenditure,leading to deterioration in its financial risk profile.

Update

NAP Constructions' performance for 2009-10 (refers to financialyear, April 1 to March 31) is estimated to have been in line withCRISIL's expectation. The company had an order book of aroundINR650-700 million as on date including projects for constructionof a foundry park in Howrah (West Bengal) and a shopping mall inHaldia (West Bengal). The company has achieved a turnover ofaround INR50 million from April 2010 till July 2010.

Its liquidity is likely to remain moderate, backed by steadyaccruals, no significant capex plans, and minimal equipment loanobligations, but constrained by high bank limit utilization forfunding working capital requirements.

The company reported a provisional profit after tax (PAT) of INR22million on net sales of INR407 million for 2009-10 (refers tofinancial year, April 1 to March 31), as against a PAT of INR21million on net sales of INR373 million for 2008-09.

About NAP Construction

Set up in 1983 as a proprietorship concern by Mr. Nirmalya Ghosh,NAP Construction undertakes civil construction projects. The firm,a closely held company since 1994, is engaged in the constructionof housing properties, railway platforms, and renovation ofheritage properties in West Bengal.

CRISIL believes that RCCPL will continue to benefit over themedium term from its steady cash flows from lease rentals. Theoutlook may be revised to 'Positive'if RCCPL diversifies itsrevenue profile and improves it capital structure. Conversely, theoutlook may be revised to 'Negative' in case of unexpectedtermination of existing leases, causing the company's revenues andprofitability to decline significantly, or if RCCPL undertakes alarger-than-expected, debt-funded capital expenditure program, orextends significant support to its group entities, therebyweakening its financial risk profile.

About Rao Computer

Incorporated in 1997, RCCPL initially provided informationtechnology (IT) services in India as well as abroad. However, withthe slowdown in revenues from its US partner, it diversified intocommercial real estate project. RCCPL has developed commercialspace in Bengaluru, with a built-up area of about 0.14 millionsquare feet, which has been given on lease to various corporateentities and others.

RCCPL reported a provisional profit after tax (PAT) of INR1million on net sales of INR35 million for 2009-10 (refers tofinancial year, April 1 to March 31), against a net loss of INR2million on net sales of INR29 million for 2008-09.

The ratings reflect RYL's weak financial risk profile, marked byhigh gearing, and the intense competition the company faces in thecotton yarn spinning segment. These rating weaknesses arepartially offset by RYL's established relationships with itssuppliers and customers, and its moderate operating efficiencies.

Outlook: Stable

CRISIL expects RYL to maintain its business risk profile over themedium term, backed by a widespread distribution network; RYL'soperating margin is expected to remain low over the medium term,thereby keeping its financial risk profile constrained. Theoutlook may be revised to 'Positive' if RYL's revenues andprofitability increase substantially, leading to better-than-expected cash accruals. Conversely, the outlook may be revised to'Negative' in case RYL's financial risk profile weakens further,most likely because of further decline in operating profitabilityor fresh, large debt-funded capital expenditure.

About Rashmi Yarns

RYL, originally set up as a private limited company in 1997,became a public limited company in 2006. RYL is in the businessof texturising and twisting polyester partially oriented yarn(POY). It manufactures texturised and twisted yarn in the 70 to 90denier range, and caters primarily to weavers of women's blousepieces and dress material.

RYL reported a profit after tax (PAT) of INR3 million on net salesof INR405 million for 2009-10 (refers to financial year, April 1to March 31), against a PAT of INR1 million on net sales of INR345million for 2008-09.

CRISIL believes that SDSC will continue to benefit from its stabledistribution network and the moderate brand appeal of its productsover the medium term. The outlook may be revised to 'Positive' ifthe firm increases its scale of operations significantly, andimproves financial risk profile by improving profitability or withinfusion of capital. Conversely, the outlook may be revised to'Negative' if SDSC's operating profitability declines sharply, orif the firm contracts large quantum of debt to fund its capitalexpenditure, adversely affecting its financial risk profile.

About S.D. Soaps

SDSC, a partnership firm set up in 2003 by Mr. Suresh Dhirani,manufactures toilet soaps under its brand names, Lissa andHealthcare. The firm sells its products to various dealers anddistributors, primarily in the eastern and northern India.

SDSC reported a profit after tax (PAT) of around INR5 million onnet sales of INR415 million for 2009-10 (refers to financial year,April 1 to March 31), against a PAT of INR7.3 million on net salesof INR425 million for 2008-09.

CRISIL believes that SK will continue to benefit from itspromoters' experience in the civil construction industry and itssizeable order book over the medium term. The outlook may berevised to 'Positive' if SK strengthens its business risk profileby increasing the segmental and geographical diversity of itsrevenue profile. Conversely, the outlook may be revised to'Negative' if the firm undertakes a larger-than-expected debt-funded capital expenditure or acquisition program, if the partnersin the firm withdraw sizeable capital from the firm, leading todeterioration in the firm's financial risk profile.

About Sanwar Mal

SK was set up as a proprietary firm in 1970 by Mr. SanwarmalKhetawat for undertaking civil construction works. In 1995, itwas reconstituted as a partnership firm with Mr. Sanjay Khetawat,son of Mr. Sanwarmal Khetawat, joining in as a partner. Sinceinception, the firm has been executing civil construction projectsin Assam, involving constructing buildings, national highways, andbridges. 60 to 65 per cent of the firm's revenues come fromconstructing buildings, 25 to 30 per cent from national highways,and the rest from bridges. SK is registered with several agenciesof the Government Assam and the Government of India. In addition,the firm is also executing several building construction projectsfor Tezpur University, Assam, and the Indian Institute ofTechnology (IIT), Guwahati. SK had an order book of around INR650million as on August 15, 2010.

SK's profit after tax (PAT) and net sales are estimated to beINR35.0 million (including pre-tax extraordinary income ofINR25.0 million) and INR343.0 million respectively for 2009-10(refers to financial year, April 1 to March 31); it reported a PATof INR12.7 million on net sales of INR321.0 million for 2008-09.

The ratings reflect SSBPL's large working capital requirements,marginal market share in the bearings industry, and exposure tosupplier concentration risk. These rating weaknesses arepartially offset by the experience of SSBPL's promoters in thebearings industry.

Outlook: Stable

CRISIL believes that SSBPL will continue to benefit from itspromoters' industry experience over the medium term. The company'sfinancial flexibility is expected to remain constrained because ofits large working capital requirements. The outlook may berevised to 'Positive' if SSBPL's liquidity improves, led byimproved receivables management, fresh equity infusion, or better-than-expected cash accruals. Conversely, the outlook may berevised to 'Negative' if the company's liquidity deterioratesbecause of increasing working capital requirement, or if itsfinancial risk profile deteriorates because of sharp decline inits profitability , or if it undertakes a significant debt-fundedcapital expenditure program.

About Shree Shyam

SSBPL, based in Kolkata, was promoted in 2005 by Mr. Pradeep KumarAgarwal and family. SSBPL was set up to acquire the operations ofShree Shyam Enterprises, which was set up in 1995. SSBPL is anauthorised distributor of bearings for principals NSK Ltd, Japan;and Minsk Bearing Plant (MPZ), Belarus. It is also an authoriseddistributor of fire extinguishers (fire balls) of Siam SafetyPremier Company Ltd (Siam), Thailand.

Mr. Agarwal has experience of around 35 years in the bearingsindustry through proprietorship and partnership firms. He has beenengaged in distribution of bearings since 1975.

SSBPL reported a profit after tax (PAT) of INR7 million on netsales of INR599 million for 2009-10 (refers to financial year,April 1 to March 31), against a PAT of INR4 million on net salesof INR315 million for 2008-09.

CRISIL believes that Siddhi will continue to benefit from itspromoters' experience in the cotton ginning industry, over themedium term. The outlook may be revised to 'Positive' if Siddhi'sfinancial risk profile and capital structure improvesignificantly, most likely through increase in accruals orinfusion of equity. Conversely, the outlook may be revised to'Negative' if material decline in Siddhi's operating marginresults in reduced cash accruals, or if the firm's working capitalcycle deteriorates, increasing its dependence on debt.

About Siddhi Industries

Incorporated in 2007, Siddhi manufactures cotton seed oil andcotton cakes. The company, set up by Mr. Rajesh Thakkar, has amanufacturing facility in Harij, Gujarat, having capacity of 80tonnes per day (tpd). The firm is now diversifying into cottonginning and is setting up a plant with a capacity of 50 tpd. Thetotal outlay of the project is INR20.4 million, funded with a termloan of INR14 million and promoter's contribution of INR6.4million. The plant is expected to commence commercial operationsfrom October 1, 2010.

Siddhi reported a profit after tax (PAT) of INR0.5 million on netsales of INR160.5 million for 2009-10 (refers to financial year,April 1 to March 31), against a PAT of INR0.5 million on net salesof INR12 million for 2008-09.

Soma is into spinning, weaving, dyeing, fabricprocessing/finishing, and garment manufacturing. The company'sAhmedabad (Gujarat) unit produces yarn, regular and denim fabric,and garments. The Baramati (Maharashtra) plant, which was set upas a 100 per cent export-oriented unit, produces cotton yarn; itcaters to both the domestic and export markets.

The company has restructured its debt obligations through acorporate debt restructuring program. For 2009-10 (refers tofinancial year, April 1 to March 31), Soma, on a standalone basis,reported a net loss of INR187 million (Rs.284 million net loss forthe previous year), on net sales of INR2.1 billion (Rs.1.6billion). For the first quarter of 2010-11, the company, on astandalone basis reported a net loss of INR17 million on net salesof INR563 million.

SRI DURGA: CRISIL Reaffirms 'BB+' Rating on INR330MM Cash Credit----------------------------------------------------------------CRISIL's rating on the bank facilities of Sri Durga Condev PrivateLimited continues to reflect the company's weak financial riskprofile, and the working capital-intensive nature of itsoperations. These weaknesses are partially offset by the benefitsthat the company derives from its healthy order book.

CRISIL believes that SDCPL will benefit from the growth prospectsin the civil construction industry. The outlook may be revised to'Positive' if SDCPL strengthens its business risk profile byenhancing segmental and geographical diversity in its revenueprofile, while maintaining operating margins. Conversely, anydeterioration in SDCPL's financial risk profile owing to large,additional, debt-funded capital expenditure, or acquisition plans,may lead to a revision in the outlook to 'Negative'.

Update

SDCPL's performance for 2009-10 (refers to financial year, April 1to March 31) is estimated to have been in line with CRISIL'sexpectation. The turnover of the company has grown at around 19per cent in 2009-10 as compared to the previous year. The companyhas an order book of around INR4500 million as on August 2010. Theorder book of the company comprises mainly of dam and canalprojects in Orissa.

Its liquidity is likely to remain stretched, backed by high banklimit utilisation for funding working capital requirements, highdebt repayment obligations but supported by steady accruals and nosignificant capex plans.

The company reported a provisional profit after tax (PAT) ofINR45.9 million on net sales of INR1291 million for 2009-10(refers to financial year, April 1 to March 31), as against a PATof INR37 million on net sales of INR1086 million for 2008-09.

About Sri Durga

Set up in 1987 by Mr. Pramod Rath and his family as a partnershipfirm, SDCPL (formerly, Sri Durga Construction) undertakes civilconstruction activities including the construction of roads, dams,and railway lines. It has executed National Highway projects, andseveral dam and railway projects in Orissa. In 2000, the companybecame a closely held company, with its partners continuing asdirectors.

SRINATH SPINNERS: CRISIL Reaffirms Rating on INR153.1 Mil. Loan---------------------------------------------------------------CRISIL's rating on the bank facilities of Srinath Spinners Ltdcontinues to reflect its weak financial risk profile of SSL(consolidated), and SSL's exposure to risks relating to volatilityin cotton prices. These weaknesses are, however, partially offsetby the benefits that SSL derives from the experience of itspromoters in the yarn industry enabling them to maintain moderateoperating efficiency.

CRISIL has consolidated the financials of SSL and Srinath SpinningMills Ltd. This is because the two companies are under a commonmanagement, and in the same line of business. Moreover, SSML, theholding company, has extended corporate guarantees to the loans ofSSL.

Outlook: Stable

CRISIL expects SSL to maintain a favourable business profile overthe medium term backed by its established customer profile. Theoutlook may be revised to 'Positive' if significant improvement inoperating margins strengthens SSL's consolidated financial riskprofile. Conversely, the outlook may be revised to 'Negative' ifthe consolidated financial profile deteriorates significantly, orif it takes on substantial debt to fund capital expenditure.

Update

SSL's business performance during 2009-10 (refers to financialyear, April 1 to March 31) was in line with CRISIL's projections.SSL's financial risk profile continues to remain weak, marked byhigh gearing, weak debt protection measures, and a small networth.

The SSL (consolidated) reported an estimated net loss of INR5million on net sales of INR432 million for 2009-10, as against anet loss of INR12 million on net sales of INR432 million for 2008-09.

About Srinath Spinners

SSL, incorporated as a public limited company in April 2001 byMr. Ketan C. Parekh, Mr. Premal C Parekh, and Mr. Prem KumarAgarwal manufactures coarse yarn. The company began commercialproduction in August 2007, and has a capacity of 1440 rotors.SSML, established in 1995, is the flagship company of the group.Its open-end spinning mills have a capacity of 1760 rotors.

SRIVARI INDUSTRIES: CRISIL Places 'BB+' Rating on INR52.8M Loan---------------------------------------------------------------CRISIL has assigned its 'BB+/Stable/P4+' ratings to the bankfacilities of Srivari Industries.

The ratings reflect Srivari's exposure to risks related to largeworking capital requirements, and to a small scale of operationsamid intense competition in the packaging industry. These ratingweaknesses are partially offset by Srivari's above-averagefinancial risk profile marked by a comfortable gearing and debtprotection metrics, established presence in the non-wovenpackaging bag business.

Outlook: Stable

CRISIL believes that Srivari will continue to benefit from itscomfortable capital structure and its promoters long standingexperience in the non-woven packaging bag industry. The outlookmay be revised to 'Positive' if Srivari significantly improves itsscale of operations and revenue diversity, while maintaining itsprofitability. Conversely, the outlook may be revised to'Negative' if Srivari undertakes any large, debt-funded capitalexpenditure program, or its profitability declines significantly,thereby deteriorating its financial risk profile.

About Srivari Industries

Set up in 2006, Srivari manufactures polypropylene (PP) bags andplastic bottles. These bags are largely used in retail, fastmoving consumer goods (FMCG) and pharmaceutical sectors. Thefirm's promoter Mr. K Rajendra Chetty has around 15 years ofexperience in similar lines of business. The firm has capacity tomanufacture 10 tonnes per day (tpd) of PP bags and 20,000 plasticbottles per day. The PP bags are sold through Srivari's five salesdepots, which are located at Erode, Madurai, and Chennai in TamilNadu, Tirupati in Andhra Pradesh, and Bengaluru in Karnataka.

Srivari reported a provisional profit after tax (PAT) of INR19million on net sales of INR293 million for 2009-10 (refers tofinancial year, April 1 to March 31), against a PAT of INR15million on net sales of INR227 million for 2008-09.

SUVIKAS ALLOYS: CRISIL Places 'BB-' Ratings on INR58.2MM Term Loan------------------------------------------------------------------CRISIL has assigned its 'BB-/Stable/P4+' rating to the bankfacilities of Suvikas Alloys and Steel Pvt Ltd, which is part ofthe Jagdish Aggarwal group.

The ratings reflect the group's exposure to risks relating tovolatility in steel prices, and intense competition in the thermo-mechanically treated (TMT) bar industry. These rating weaknessesare partially offset by the benefits that the Jagdish Aggarwalgroup derives from its promoters' experience in the TMT barindustry.

As part of this rating exercise, CRISIL has combined the businessand financial risk profiles of Suvikas Alloys and Steel Pvt Ltd(SASPL), and Vishnu Steels, and together referred to as theJagdish Aggarwal group. This is because SASPL and Vishnu Steelshave common promoters and management, and are in the same line ofbusiness.

Outlook: Stable

CRISIL believes that the Jagdish Aggarwal group will continue tobenefit from the extensive experience of its promoters inbusiness. The outlook may be revised to 'Positive' if the group'srevenues and net cash accruals increase substantially. Conversely,the outlook may be revised to 'Negative' if the group's debtprotection indicators deteriorate, or if it contracts significantdebt to fund capital expenditure.

About the Group

SASPL, incorporated by Mr. Surajnath Singh, was taken over byMr. Jagdish Aggarwal in July 2008. The company manufacturesingots and TMT bars. Vishnu Steels is part of the Jagdish Aggarwalgroup, and is in a similar line of business. Vishnu Steels wasset up by Mr. Guman Singh, and later taken over by Mr. Aggarwal inApril 2009. Both the plants are located at Wada district inThane, Maharashtra. SASPL has an ingot manufacturing capacity ofaround 1000 tonnes per month (tpm) and rolling mill capacity ofaround 3800 tpm as on March 31, 2009. Vishnu Steels has a rollingcapacity of around 3500 tpm. The group is managed by Mr. JagdishAggarwal and his son, Mr. Nikhil Aggarwal.

The group reported a negative profit after tax (PAT) of INR0.6million on net sales of INR1.7 billion for 2009-10 (refers tofinancial year, April 1 to March 31), against a PAT of INR2.6million on net sales of INR860 million for 2008-09.

CRISIL believes that Tirth Agro Technology Pvt Ltd will benefitfrom its established market position over the medium term. Itsfinancial risk profile is expected to remain moderate over thenear term due to ongoing debt-funded capex. The outlook may berevised to 'Positive' if better-than-expected topline and marginsimprove TATPL's financial risk profile. Conversely, the outlookmay be revised to 'Negative' if TATPL's financial risk profiledeteriorates due to larger-than-expected working capital and lowermargins, or any changes in the government policy on subsidyadversely impacting revenue growth.

About Tirth Agro

Set up by Mr. Ashwin Gohil in 2000, TATPL manufactures and sellstractor-driven rotary tillers and other agricultural implementsunder its brand, Shaktiman. Till 2007, the promoters of TATPLwere manufacturing rotary tillers on a small scale in anothergroup proprietorship firm, A G Agro Industries. These operationswere discontinued in 2007, after which the manufacturingactivities were undertaken in TATPL at its manufacturing plant inRajkot (Gujarat). The company has recently increased its capacityto 125,000 tillers per annum from 22,500 tillers per annum.

TATPL reported an estimated profit before tax (PBT) of INR36.9million on estimated net sales of INR1167.7 million for 2009-10(refers to financial year, April 1 to March 31), against a profitafter tax (PAT) of INR8.1 million on net sales of INR724.4 millionfor 2008-09.

VISHNU STEELS: CRISIL Rates INR80.0 Million Cash Credit at 'BB-'----------------------------------------------------------------CRISIL has assigned its 'BB-/Stable' rating to the cash creditfacility of Vishnu Steels, which is part of the Jagdish Aggarwalgroup.

The rating reflects the group's exposure to risks relating tovolatility in steel prices, and intense competition in the thermo-mechanically treated (TMT) bar industry. These rating weaknessesare partially offset by the benefits that the Jagdish Aggarwalgroup derives from its promoters' experience in the TMT barindustry.

As part of this rating exercise, CRISIL has combined the businessand financial risk profiles of Vishnu Steels, and Suvikas Alloysand Steel Pvt Ltd, together referred to as the Jagdish Aggarwalgroup. This is because SASPL and Vishnu Steels have commonpromoters and management, and are in the same line of business.

Outlook: Stable

CRISIL believes that the Jagdish Aggarwal group will continue tobenefit from the extensive experience of its promoters inbusiness. The outlook may be revised to 'Positive' if the group'srevenues and net cash accruals increase substantially. Conversely,the outlook may be revised to 'Negative' if the group's debtprotection indicators deteriorate, or if it contracts significantdebt to fund capital expenditure.

About the Group

SASPL, incorporated by Mr. Surajnath Singh, was taken over byMr. Jagdish Aggarwal in July 2008. The company manufacturesingots and TMT bars. Vishnu Steels is part of the Jagdish Aggarwalgroup, and is in a similar line of business. Vishnu Steels wasset up by Mr. Guman Singh, and later taken over by Mr. Aggarwal inApril 2009. Both the plants are located at Wada district inThane, Maharashtra. SASPL has an ingot manufacturing capacity ofaround 1000 tonnes per month (tpm) and rolling mill capacity ofaround 3800 tpm as on March 31, 2009. Vishnu Steels has a rollingcapacity of around 3500 tpm. The group is managed by Mr. JagdishAggarwal and his son, Mr. Nikhil Aggarwal.

The group reported a negative profit after tax (PAT) of INR0.6million on net sales of INR1.7 billion for 2009-10 (refers tofinancial year, April 1 to March 31), against a PAT of INR2.6million on net sales of INR860 million for 2008-09.

=================I N D O N E S I A=================

ADARO INDONESIA: Fitch Affirms Issuer Default Rating at 'BB+'-------------------------------------------------------------Fitch Ratings has affirmed PT Adaro Indonesia's Long-term foreignand local currency Issuer Default Ratings at 'BB+'. The Outlookremains Stable. Fitch has also affirmed at 'BB+' Adaro's seniorunsecured ratings of its US$800 million senior notes due in 2019issued by Adaro and guaranteed by its parent, PT Adaro Energy Tbk.

The affirmations reflect Adaro's large, low cost operations withstrong track record of growth, supported by its longstandingrelationship with leading customers, and its robust financials.However, the ratings remain constrained by the company's exposureto single-site operations.

Fitch notes that earlier this year, Adaro Energy acquired a 25%stake in Indomet Coal Project for US$335 million as part of theGroup's strategy to diversify into coking coal. The agencyexpects the Group to make additional investments as part of itsstrategy to secure additional coal resources to support long-termgrowth, and to further integrate and improve its operations.Other rating concerns include regulatory uncertainties in theIndonesian coal mining industry.

Adaro recorded lower EBITDAR margin of 31.7% in H110 (2009: 37.7%)due primarily to a lower average selling price of US$55.2/t inH110 (2009: US$58.6/ton). This is because most of the salesrealised during H110 were derived mainly from contracts pricedduring H109 when the spot market was weak. The agency notes thatmovements in Adaro's realized selling price typically lag globalprice fluctuations by six to 12 months as Adaro sells most of itscoal via long-term fixed volume contracts with index-linked pricesthat typically reset annually. Furthermore, Adaro recorded higherproduction cost of US$31.7/t (excluding royalty) against US$30.1/tin 2009 due to adverse weather during the same period. The agencyhowever notes that despite the heavy rainfall, Adaro managed toincrease its production by 20% yoy to 21.6mt in H110.

As a result of lower profitability in H110, and some cash outflowsfor tax payments and dividends, Adaro recorded a higher financialleverage (as measured by net debt / operating EBITDAR) of 0.9x atthe end of the period (2009: 0.2x). Fitch believes this increaseis temporary and expects Adaro and Adaro Energy to quicklydeleverage driven by medium-term price and order visibility. Thisexpectation drives the Stable Outlook.

Changes in the company's business environment including adversechanges in the global thermal coal industry dynamics, prolongeddisruption of operations and adverse changes in the regulatoryenvironment would be the most likely drivers of any negativerating action. Adaro's current strong balance sheet means that acredit ratio driven negative rating action is not likely unlessthe company changes its financial policies to allow a sustainedincrease in financial leverage. A positive rating action will beconsidered only when the company's scale of operations increasesmeaningfully, which is not envisaged in the short to medium term.

Adaro owns and operates the single largest coalmine in Indonesia,with an expected production of 43mt in 2010. It is Indonesia'ssecond largest coal producer and operates under a 30-year CoalContract of Work that remains valid until 2022. In the first sixmonths to end-June 2010, the company recorded revenues ofUS$1.2 billion, and EBITDA of US$378.2 million.

Dow Jones relates that the contractor, which also sellscondominium and real estate, said it has been struggling tocontend with a persistent falloff in real estate prices since theU.S. subprime mortgage crisis.

According to Dow Jones, the company had asked creditor banks forpermission to delay loan payments. But the situation surroundingthe company didn't allow for a recovery in business performance,prompting it to seek court protection.

Daiwasystem Co. (TYO:8939) is a Japan-based company operating infour business segments. The Construction segment is engaged inthe design, contract building and construction supervision ofcommercial and industrial buildings, welfare facilities andleasing buildings, as well as the leasing of commercialfacilities. The Real Estate segment is engaged in the sale ofcondominiums, the provision of housing land, as well as thetrading, brokerage and leasing of real estate. The Warm bathsegment is engaged in the operation and management of directly-managed large warm bath facilities. The Others segment isinvolved in the provision of non-life insurance agency services.

JAPAN AIRLINES: Hotel Okura Acquires 79.6% Stake in JAL Hotels--------------------------------------------------------------Kyodo News reports that Hotel Okura Co. has acquired a majoritystake in JAL Hotels Co., a hotel operating unit of Japan AirlinesCorp sold as part of the carrier's management rehabilitation plan.

According to Kyodo News, Hotel Okura, based in Tokyo, haspurchased a 79.6% stake in JAL Hotels in terms of voting rightsfrom Japan Airlines International Co, JAL's core airline unit,which retained an 11.1% stake. Kyodo says the cost of theacquisition was not disclosed but is estimated to be around JPY6billion.

About Japan Airlines

Japan Airlines Corporation -- http://www.jal.co.jp/-- is a Japan-based company mainly engaged in the provision of airtransport services. The Company is active in five businesssegments through its 203 subsidiaries and 83 associated companies.JAL International Co. Ltd. is a wholly owned operating subsidiaryof Japan Airlines Corporation.

ISDA said the Committee also voted to hold an auction forTakefuji. The auction will be administered by Markit andCreditex.

Bloomberg News reports that the Depository Trust Clearing Corp.,which runs a central repository for the credit-swaps market, saida net US$786.8 million of protection on the Tokyo-based company'sdebt was outstanding as of Sept. 24, 2010.

Takefuji bond investors may recover less than 10% of the facevalue of their holdings, according to Nomura Securities Co. Thecompany has JPY91.4 billion of bonds outstanding, including US$645million of 9.2% notes due in April, according to data compiled byBloomberg.

Takefuji Corp. filed for bankruptcy petition with the TokyoDistrict Court on September 28, 2010, with debts ofJPY433.6 billion. The company has become the biggest casualty ofJapan's four-year crackdown on coercive lending practices byconsumer finance companies.

Bloomberg says the lender is seeking to restructure as borrowerclaims of overpaid interest are estimated to exceed JPY1 trillion.

About Takefuji

Takefuji Corporation (TYO:8564) -- http://www.takefuji.co.jp/-- is a Japan-based company mainly engaged in the consumer financebusiness. The Company operates in two business segments. TheConsumer Finance segment covers the loan and credit cardbusinesses. The Others segment is involved in the operation ofgolf courses, the development, management and leasing of realestate, the venture capital business, as well as the investmentbusiness, among others. The Company has eight subsidiaries.

WMT GLOBAL: S&P Downgrades Ratings on Two Classes of Notes to 'D'-----------------------------------------------------------------Standard & Poor's Ratings Services lowered to 'D (sf)' from 'CCC(sf)' its ratings on the class D and E fixed-rate notes issuedunder the WMT Global Funding I Inc. transaction.

The servicer had been working to sell the loan backing thetransaction since the loan defaulted in October 2008. The sale ofthe loan in question, which was finalized in late September 2010,led to principal losses on classes D and E. Meanwhile, classes Ato C were fully redeemed.

WMTGF I is a single-borrower multi-asset CMBS transaction. Thenotes issued under this transaction are backed by a loan extendedto a single borrower. The loan was originally secured by eightextended-stay limited-service apartment properties. Thetransaction was arranged by Lehman Brothers Japan Inc. CapitalServicing Co. Ltd. acts as the servicer for this transaction.

S&P had initially placed the ratings on classes A to E onCreditWatch negative on April 9, 2009, and followed up withseveral other rating actions.

GM Daewoo suffered a cash squeeze since early 2009 as the 2008global crisis troubled the company's vehicle sales. The KoreaDevelopment Bank has been negotiating with General Motors on GM'sinjection of fresh cash into the embattled unit and other ways ofkeeping it afloat, including a transfer of key auto technologies,shareholder rights and a dispatch of officials to oversee thesubsidiary's finances. The lender is considering retrieving theloans from GM Daewoo if both sides fail to reach agreement on theturnaround plan.

====================N E W Z E A L A N D====================

AIR NEW: Moody's Raises Rating from 'Ba1'; Gives Stable Outlook---------------------------------------------------------------Moody's Investors Service has raised Air New Zealand's issuerrating from Ba1 to Baa3. The outlook is stable.

Ratings Rationale

"The one notch upgrade to Air New Zealand's issuer rating reflectsits relative good performance and resilience through the downturnand Moody's expectation of continued improved performance for thecompany which is now enjoying more stable operating conditions",says Ian Lewis a Moody's Vice President and Senior Analyst.

"Relative to its international peer group, the company hasperformed at levels -- and demonstrated financial metrics -- whichare indicative of a resilient business model and sound managementthrough the cycle", says Lewis who is also Lead Analyst for thecompany.

"We expect that Air New Zealand's financial profile willstrengthen gradually with Debt/EBITDA expected to track between3.5 and 4.0x over the next 12-18 months, and reversion of marginsto, at or around 20%", says Lewis.

"Nevertheless, Moody's are cognizant that the airline industry isone of the most volatile sectors in Moody's portfolio andchallenges for the company will continue to include volatility inexchange rates, fuel prices and customer demand as well as boutsof intense competitive pressure - though Moody's expect these tobe manageable for the company within the Baa3 issuer rating." addsLewis.

Given Air New Zealand's majority ownership by the Government ofNew Zealand, Air New Zealand is considered as a Government-RelatedIssuer, and as such its rating incorporates the likelihood ofgovernment support which Moody's considers to be high. Air NewZealand's stand-alone credit profile ("Baseline Credit Assessment"or "BCA") is equivalent to Ba1.

The issuer rating of Baa3 considers the combined effect of 1)Moody's expectation for strong government support, and 2) thepresence of large secured debt - through finance leases - whichimpacts the senior unsecured creditors. Excluding the impact ofthe secured debt, the issuer rating would have been Baa2.

The rating outlook is currently stable, reflecting Air NewZealand's strong liquidity position and Moody's expectation thatthey will maintain a gradually improving performance in 2011.

The BCA is currently at the highest non-investment grade level.Given its limited geographic diversity there is limited prospectof an upgrade beyond this level, short of significant debtreduction.

The Baa3 issuer ratings could be upgraded if government supportwas formalized through a legally enforceable credit-supportagreement, or if the airline's credit profile were to become lessclosely aligned with the New Zealand economy -- which Moody'sconsider unlikely.

The BCA could come under pressure if competition was tosubstantially increase, or if Air NZ's performance was tootherwise deteriorate. Moody's would look for EBITDA marginremaining below 20% for a 18-24 month period, Debt/EBITDA risingabove 4.0x or EBIT/Interest falling below 2-2.25x on a sustainedbasis. The rating could also be pressured if Air New Zealand'sliquidity deteriorate meaningfully, including its cash balancesfalling below NZ$500 million, or should the company pay excessivedividends to its shareholders. Failure to de-leverage as expectedcould also pressure the ratings.

Air New Zealand, based in Auckland, is New Zealand's primary aircarrier, with domestic and international passenger and freightoperations, and an aviation engineering business.

Regulatory Disclosures

Information sources used to prepare the credit rating are these:parties involved in the ratings, public information, confidentialand proprietary Moody's Investors Service's information.

Moody's Investors Service considers the quality of informationavailable on the issuer or obligation satisfactory for thepurposes of maintaining a credit rating.

MOODY'S adopts all necessary measures so that the information ituses in assigning a credit rating is of sufficient quality andfrom sources MOODY'S considers to be reliable including, whenappropriate, independent third-party sources. However, MOODY'S isnot an auditor and cannot in every instance independently verifyor validate information received in the rating process.

=====================P H I L I P P I N E S=====================

PHILIPPINE AIRLINES: Gov't. to Stop Planned Flight Crew Strike--------------------------------------------------------------Eric B. Apolonio at Manila Standard Today reports that LaborSecretary Rosalinda Baldoz said Friday she would ban a strike atPhilippine Airlines if the company and its flight attendants'union failed to reach an agreement next week.

According to the Manila Standard, Ms. Baldoz ordered the airlineand its cabin crew union to resume talks on Oct. 5, after theunion said it would strike as early as the end of the month.

The Manila Standard relates Ms. Baldoz said a breakthrough waspossible once the two sides met again next week before theNational Conciliation and Mediation Board.

As reported in the Troubled Company Reporter-Asia Pacific onOctober 1, 2010, BusinessWorld Online said flight attendants andstewards of Philippine Airlines withdrew from conciliationmeetings with the carrier's management and have begun preparationsfor a strike between the end of October and the first week ofNovember. Robert Anduiza, president of the PAL-FlightAttendants' and Stewards' Association of the Philippines (FASAP),said talks at the National Conciliation and Mediation Board of theDepartment of Labor and Employment over a new collectivebargaining deal were "deadlocked".

About Philippine Airlines

Philippine Airlines -- http://www.philippineairlines.com/-- is the Philippines' national airline. It was the first airline inAsia and the oldest of those currently in operation. With itscorporate headquarters in Makati City, Philippine Airlines fliesboth domestic and international flights. First taking off in1941, the carrier has grown into a fleet of about 40 aircraft(including five Boeing 747-400s) flying to more than 20 domesticpoints and about 30 foreign destinations.

* * *

As reported in the Troubled Company Reporter-Asia Pacific onApril 21, 2010, the Manila Bulletin said that the PhilippineAirlines is to spin off its three non-core units as a last resortto avoid bankruptcy. PAL will spin off its three non-core units:inflight catering services; airport services, including groundhandling, cargo handling and ramp handling; and call centerreservations, the Manila Bulletin said. The PAL Employees Unionestimated that 2,000 to 4,000 employees assigned to thosedepartments could be retired. PAL said competition from overseascarriers, slower global economic growth, and higher oil prices hadprompted the airline to slash its non-core businesses. Thecarrier had approached several investors but failed to securefinancial help, and equity had dropped to a worrisome US$1.1million as of February 2010, according to the Manila Standard.

The TCR-AP, citing BusinessWorld Online, reported on July 28,2010, that Philippine Airlines announced a narrower loss for itsfiscal year that ended March 2010 to $14.3 million, from theprevious year's $297.8 million, but warned of still weak demandfor international flights.

=================S I N G A P O R E=================

ADVANCE SCT: Creditors Approve Debt-Restructuring Plan------------------------------------------------------Creditors of Advance SCT voted unanimously in favor of theCompany's proposed debt-restructuring scheme at a creditorsmeeting held on September 30, 2010. This is an uncommonoccurrence for companies undergoing schemes of arrangement underSection 210 of the Companies Act.

Advance SCT's financial difficulties arose when commodity pricesfell drastically in 2008. These financial difficulties wereexacerbated in 2009 during the global financial crises, with debtsincreasing in excess of S$80 million.

The creditors have appointed Neo Ban Chuan and Cameron Duncan ofKordaMenthaNeo as scheme administrators. The legal advisor ofAdvance SCT, Bernard Tan of Bih Li & Lee shall be submitting thedebt-restructuring scheme to the High Court for approval shortly.

Executive Chairman of Advance SCT, Simon Eng stated afterreceiving the endorsement that he "was pleased with theoverwhelming support received from creditors and was grateful forthe hard work of the company's management and advisers inpreparing the scheme."

Mr. Eng added that the debt restructuring was the last majorobstacle in the turn-around of Advance SCT, which reported aprofit in its half-year unaudited financial statement inAugust 2010 after losing a total of more than $190 million in 2008and 2009. With the debt restructuring behind it, the company'sboard and management can now focus on repositioning itself as aglobal recycling and wastes management expert.

About Advance SCT

Advance SCT Limited (SIN:5FH) -- http://www.advancesct.com/-- is a Singapore-based investment holding company. Advance SCT's mainbusiness is in metal trading and resource recycling as well aswastes management. The Group has been listed on the main board ofthe Singapore Exchange since November 24, 2004.

By region, the current year-to-date default tallies are 41 in theU.S., two in Europe, five in the emerging markets, and nine in theother developed region (Australia, Canada, Japan, and NewZealand). So far this year, missed interest or principal paymentsare responsible for 18 defaults; distressed exchanges account for16; Chapter 11 and foreign bankruptcy filings account for 14;receiverships account for two; regulatory directives, debtreorganization, and the exercising of payment-in-kind toggleoptions are responsible for one each; and the remaining fourdefaulted issuers are confidential.

Of the global corporate defaulters in 2010, 41% of issues withavailable recovery ratings had recovery ratings of '6' (indicatingour expectation for negligible recovery of 0% to 10%), 11% of theissues had recovery ratings of '5' (modest recovery prospects of10% to 30%), 13% had recovery ratings of '4' (average recoveryprospects of 30% to 50%), and 16% had recovery ratings of'3' (meaningful recovery prospects of 50% to 70%). And for theremaining two rating categories, 11% of the issues had recoveryratings of '2' (substantial recovery prospects of 70% to 90%) and9% had recovery ratings of '1' (very high recovery prospects of90% to 100%).

* BOND PRICING: For the Week September 27 to October 1, 2010------------------------------------------------------------

Tuesday's edition of the TCR-AP delivers a list of indicativeprices for bond issues that reportedly trade well below par.Prices are obtained by TCR-AP editors from a variety of outsidesources during the prior week we think are reliable. Thosesources may not, however, be complete or accurate. The TuesdayBond Pricing table is compiled on the Friday prior topublication. Prices reported are not intended to reflect actualtrades. Prices for actual trades are probably different. Ourobjective is to share information, not make markets in publiclytraded securities. Nothing in the TCR-AP constitutes an offeror solicitation to buy or sell any security of any kind. It islikely that some entity affiliated with a TCR-AP editor holdssome position in the issuers' public debt and equity securitiesabout which we report.

A list of Meetings, Conferences and Seminars appears in eachWednesday's edition of the TCR-AP. Submissions about insolvency-related conferences are encouraged. Send announcements toconferences@bankrupt.com

Friday's edition of the TCR-AP features a list of companies withinsolvent balance sheets obtained by our editors based on thelatest balance sheets publicly available a day prior topublication. At first glance, this list may look like thedefinitive compilation of stocks that are ideal to sell short.Don't be fooled. Assets, for example, reported at historicalcost net of depreciation may understate the true value of afirm's assets. A company may establish reserves on its balancesheet for liabilities that may never materialize. The prices atwhich equity securities trade in public market are determined bymore than a balance sheet solvency test.

This material is copyrighted and any commercial use, resale orpublication in any form (including e-mail forwarding,electronic re-mailing and photocopying) is strictly prohibitedwithout prior written permission of the publishers.Information contained herein is obtained from sources believedto be reliable, but is not guaranteed.

TCR-AP subscription rate is US$625 for 6 months delivered via e-mail. Additional e-mail subscriptions for members of the samefirm for the term of the initial subscription or balancethereof are US$25 each. For subscription information, contactChristopher Beard at 240/629-3300.